TECH-enabled startup ErudiFi announced on Tuesday that it has raised US$5 million in a Series A funding round co-led by Singaporean venture firms Monk's Hill Ventures and Qualgro Partners.
The startup said it will use the funds to expand hiring, scale up its education financing services and deepen existing footprints in Indonesia and the Philippines by establishing closer relationships with schools and students.
The tech-financing platform declared a three times growth in 2020, helping more than "thousands of financially underserved students" secure funding to pay off school fees.
The company also came up with a new service to help schools track disbursements and provide real-time analytics, noting that schools in South-east Asia had a dropout rate of 10 to 15 per cent annually. The startup said this was largely due to financial difficulties faced by students and their families.
"At present, nearly two-thirds of Indonesian and Filipino youths are unable to enrol in higher education due to lack of affordable financing. We are excited to further our goal of expanding access to quality education in the region," said Naga Tan, chief executive officer and co-founder of ErudiFi.
Ong Peng Tsin, co-founder and managing partner of Monk's Hill Ventures, was optimistic on the startup's potential as a tech-based financing solutions company.
"By taking a first-principles approach, Naga and his team have been laser-focused on bringing a tech-enabled and data-driven solution that provides students with access to education," said Mr Ong.
"We are excited to partner with Naga and his team and believe they have the conviction and strength to bring access to education to millions of people," he added.